Multiplier
FOREX
Key Graphs
Unemployment
Monetary/Fiscal Policy

### 100

This is the multiplier value when MPC is .8

What is 5?

### 100

This is what happens to the value of the US dollar when the demand for the dollar decreases.

What is depreciation?

### 100

What is short run perfect competition?

### 100

This is a form of unemployment when there are more people looking for jobs, then there are jobs at the current wage.

What is Structural Unemployment?

### 100

This is who conducts Fiscal policy

What is congress and the president?

### 200

This is the MPC value if MPS is .75

What is .25?

### 200

This is what happens to the supply curve of the US dollar when it appreciates.

What is shifting left?

### 200

What is a negative supply shock?

### 200

This is the formula for calculating the unemployment rate

What is number of unemployed/Labor force?

### 200

This is the open market operation that the FED uses to lower interest rates.

### 300

This is the MPC value if income increased by 10% and consumption increased by 5%

What is .5?

### 300

What is monopoly profit?

### 300

This is what happens to unemployment when inflation increases.

What is a decrease in unemployment?

### 300

This is what happens to interest rates when the FED wants to promote spending.

What is lowering interest rates?

### 400

This is the amount of government spending needed to close a $200 billion recessionary gap if MPC is .5 What is$100 billion?

### 400

This is what a country's economy experiences when it has lower interest rates than other nearby countries.

What is capital outflow?

### 400

These are people who have stopped looking for jobs but are not considered unemployed.

What are discouraged workers?

### 400

This is the situation that occurs in the loanable funds market when the government borrows a lot of money in order to spend it and increase AD.

What is crowding out?

### 500

This is the amount of disposable income generated by a 5% tax decrease that makes total tax revenue decreases by $300 billion. What is$300 billion?

### 500

This is the theoretical level of unemployment below which inflation would be expected to rise.

What is NAIRU?

### 500

This is the interest rate that banks charge each other when lending and borrowing occurs.

What is the federal funds rate?